CTG Resources Corrects and Replaces Previous Announcement to Include Additional Financial Tables.

Business/Technology Editors

CTG Resources Announces Earnings for Second Quarter of FY1999

HARTFORD, Conn.--(BUSINESS WIRE)--April 28, 1999--

CTG Resources, Inc. (NYSE:CTG), the parent company of Connecticut Natural Gas Corp. (CNG) and The Energy Network, Inc. (TEN), announced second quarter earnings of $1.41 per share, compared to $1.12 for the same quarter last year, an increase of $.29 or 26%. Year to date earnings of $2.07 for the six months ending March 1999 mark an $.11 or 5.6% improvement from last year's earnings for same period of $1.96.

Gas operations accounted for an increase of $.16 for the quarter, contributing $1.34, while TEN's earnings of $.07 were up from a loss of $.02 for the same quarter last year. TEN recognized a non-recurring loss last year from the wind down of certain non-performing assets.

In reviewing the Company's operations for the first six months, Arthur Marquardt, Chairman, President and C.E.O. said, "Weather insurance was a very sound move on our part, and we intend to secure similar coverage next winter. We continue to see growth in our residential customer base, benefiting from the strong local economy. We added over 2,000 residential heating customers over last year, which account for approximately $750,000 in annual new margin. TEN's earnings growth is the result of our decision last year to focus unregulated operations on owning and operating physical energy assets. District heating and cooling earnings are up $.04. The remaining $.09 improvement over last year reflects the net impact of discontinuing the unregulated gas marketing business during the second quarter of FY98."

While weather during the second quarter was 5% warmer than normal, it was 14% colder than the second quarter of FY98. For the year to date, weather was 7% warmer than normal and 1% colder than last year. The weather and customer usage accounted for approximately $.19 of the increase over quarterly earnings last year. The Company recognized second quarter earnings of approximately $.03 from weather earnings stabilization insurance, which moderated the impact of warmer than normal weather. On a year to date basis, the Company realized approximately $.08 in earnings from the weather insurance. After the insurance payout, warmer weather still accounted for approximately $.09 of lost earnings for the quarter.

Firm throughput was up almost 14% over the second quarter of last year. Due to lower margins and a 3% decline in interruptible sales volumes, interruptible sales margins were down $.05 from last year's second quarter. The benefit of recent increases in oil prices came too late in the quarter to improve interruptible sales margin.

Unregulated operations continue to secure opportunities for future growth. TEN's recent acquisition and December 1998 re-powering of the 8MW-cogeneration unit at Hartford Hospital positioned TEN to benefit from the growth in Hartford's South End. The Hartford Hospital cogeneration project will provide heating and cooling to The Learning Corridor, a major educational complex development that includes three new schools and related buildings. TEN should realize an estimated $25M in additional revenue over the life of the agreement, or an approximate 5% increase in system-wide energy load.

CTG Resources is the holding company of Connecticut Natural Gas Corporation and its unregulated subsidiary, The Energy Network. CTG is engaged in a number of energy-related businesses under The Energy Network. CTG's home page on the internet is www.ctgcorp.com.

This press release may contain certain forward looking statements including projections of future performance. The Company's earnings are impacted by a number of factors, including weather, regional economic growth, prices of gas and competing fuels, and regulation.

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                       CTG RESOURCES, INC.



CONSOLIDATED STATEMENT                    (Unaudited)
OF INCOME                   Three Months Ended    Twelve Months Ended
(Thousands of Dollars)           March 31,             March 31,
                              1999      1998        1999       1998
Operating Revenues          $113,001   $105,416   $279,616   $289,427
Less:  Cost of Energy         59,167     54,622    148,326    153,286
       State Gross Receipts
        Tax                    3,934      3,725      9,309     10,060
     Operating Margin         49,900     47,069    121,981    126,081

Operating Expenses:
 Operations and Maintenance   14,871     15,856     53,289     57,785
 Depreciation                  5,086      4,791     19,911     18,712
 Income taxes                 11,975     10,246     12,163     14,008
 Taxes other than income
  taxes                        1,978      2,007      7,422      7,522
                              33,910     32,900     92,785     98,027
Operating Income              15,990     14,169     29,196     28,054
Other Income/(Deductions),
 net                             510       (474)     2,657      1,843
Interest and Debt Expense     (4,259)    (3,968)   (16,575)   (14,377)
Net Income                    12,241      9,727     15,278     15,520
Less: Preferred Dividends         16         16         61         62
Net Income Applicable to
 Common Stock                $12,225     $9,711    $15,217    $15,458

Earnings per Average Share
 of Common Stock               $1.41      $1.12      $1.76      $1.57

Dividends Paid per
 Common Share                  $0.26      $0.25      $1.02      $1.26

Average Common Shares
 Outstanding               8,648,029  8,652,171  8,650,106  9,865,595


CONSOLIDATED BALANCE SHEETS                         (Unaudited)
(Thousands of Dollars)                                March 31,
ASSETS                                           1999         1998
Plant and Equipment                          $ 522,601     $ 497,769
Less Allowance for Depreciation                184,658       169,504
   Net Plant                                   337,943       328,265
Investments                                     11,902        11,648
Current Assets                                 105,295        82,937
Deferred Charges and Other Assets               37,402        35,522
                                             $ 492,542     $ 458,372

CAPITALIZATION AND LIABILITIES
Capitalization:
 Common stock equity                         $ 136,932     $ 130,114
 Preferred stock                                   879           883
 Long-term debt                                217,528       183,364
   Total  Capitalization                       355,339       314,361

Current Liabilities                             56,368        69,751
Deferred Credits, including income taxes        80,835        74,260
                                             $ 492,542     $ 458,372